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[Senate Report 109-190]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 309
109th Congress                                                   Report
                                 SENATE
 1st Session                                                    109-190

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        RECLAMATION STATES EMERGENCY DROUGHT RELIEF ACT OF 1991

                                _______
                                

                December 8, 2005.--Ordered to be printed

 Filed under authority of the order of the Senate of November 18, 2005

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 648]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 648) to amend the Reclamation States 
Emergency Drought Relief Act of 1991 to extend the authority 
for drought assistance, having considered the same, reports 
favorably thereon without amendment and recommends that the 
bill do pass.

                           Purpose of Measure

    The purpose of S. 648 is to amend the Reclamation States 
Emergency Drought Relief Act of 1991 to extend the authority 
for drought assistance.

                          Background and Need

    The Reclamation States Emergency Drought Relief Act of 1991 
(Public Law 102-250), as amended (Drought Act), authorizes the 
Bureau of Reclamation (Bureau or Reclamation) to undertake 
drought relief measures through emergency assistance (Title I) 
and planning activities (Title II). Title I is a temporary 
authority that expired September 30, 2005. S. 648 amends the 
Drought Act to extend the Title I authority until September 30, 
2010.
    Title I of the Drought Act provides authority for 
construction, management, and conservation measures to address 
drought impacts, including the mitigation of fish and wildlife 
impacts. With the exception of permanent well construction, 
only temporary construction activities are authorized. Title I 
also authorizes temporary contracts to make project and non-
project water available and to allow Reclamation facilities to 
be used for storage and conveyance purposes. The Drought Act 
provides for both reimbursable and non-reimbursable activities 
although all activities to date have been non-reimbursable. 
Pursuant to the Drought Act, the Bureau is authorized to make 
loans to water users for mitigating damages caused by drought. 
The 17 Reclamation States and Hawaii, as well as tribes within 
those states, are eligible for this assistance.

                          Legislative History

    S. 648 was introduced by Senator Smith on March 17, 2005, 
and referred to the Committee on Energy and Natural Resources. 
The Water and Power Subcommittee held a hearing on S. 648 on 
July 12, 2005 (S.Hrg. 109-138). At the business meeting on 
November 16, 2005, the Committee on Energy and Natural 
Resources ordered S. 648 favorably reported without amendment.

                        Committee Recommendation

    The Committee on Energy and Natural Resources, in open 
business session on November 16, 2005, by unanimous voice vote 
of a quorum present, recommends that the Senate pass S. 648.

                      Section-by-Section Analysis

    Section 1 extends the authorization of the Reclamation 
States Emergency Drought Relief Act of 1991 through September 
30, 2010.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

                                                  December 1, 2005.
Hon. Pete V. Domenici,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 648, a bill to amend 
the Reclamation States Emergency Drought Relief Act of 1991 to 
extend the authority for drought assistance.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Rachel 
Milberg.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

S. 648--A bill to amend the Reclamation States Emergency Drought Relief 
        Act of 1991 to extend the authority for drought assistance

    Summary: The Bureau of Reclamation undertakes construction, 
water management, and water conservation activities to 
alleviate damages caused by drought in certain states. Under 
current law, the authority to provide such assistance ended on 
September 30, 2005. S. 648 would extend that authority through 
September 30, 2010.
    Assuming appropriation of amounts necessary to provide the 
drought assistance authorized by S. 648, CBO estimates that 
implementing the bill would cost $18 million over the 2006-2010 
period and another $2 million after 2010. Enacting S. 648 would 
not affect direct spending or revenues.
    S. 648 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The bill would benefit states and local and tribal governments 
that qualify for reclamation assistance by extending the 
legislative authority that provides them such drought aid. Any 
costs incurred by governmental entities would result from 
complying with conditions for receiving federal assistance.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of S. 648 is shown in the following table. The 
costs of this legislation fall within budget function 300 
(natural resources and environment).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2006     2007     2008     2009     2010
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated authorization level......................................        4        4        4        4        4
Estimated outlays..................................................        3        3        4        4        4
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes S. 648 
will be enacted in fiscal year 2006 and that the necessary 
amounts will be appropriated for each year. Estimates of 
outlays are based on historical spending patterns for this 
activity.
    The Reclamation States Emergency Drought Relief Act of 1991 
provided the Bureau of Reclamation the authority to mitigate 
damages caused by drought in certain states by undertaking 
construction, water management, and water conservation 
activities. Since that time, the Congress has provided almost 
$70 million for those activities (an average of about $4 
million per year over the past 16 years).
    S. 648 would extend the authority provided under the 1991 
act over the 2006-2010 period. Because we cannot predict the 
timing or severity of droughts, CBO assumes for this estimate, 
that the need to undertake drought relief over the next five 
years will continue at the same rate as the average need over 
the past 16 years. CBO estimates, therefore, that implementing 
S. 648 would cost about $4 million each year over the 2006-2010 
period.
    Intergovernmental and private-sector impact: S. 648 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would benefit certain states and 
local and tribal governments within those states by extending 
the legislative authority that provides them drought aid. Any 
costs incurred by governmental entities would result from 
complying with conditions for receiving federal assistance.
    Estimate prepared by: Federal costs: Rachel Milberg; impact 
on state, local, and tribal governments: Lisa Ramirez-Branum; 
impact on the private sector: Craig Cammarata.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 648.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
responsibilities on private individuals and businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 648.

                        Executive Communications

    The testimony provided by the Department of the Interior at 
the Subcommittee hearing on S. 648 follows:

      Statement of John W. Keys III, Commissioner, U.S. Bureau of 
                Reclamation, Department of the Interior

    Madam Chairman, I am John W. Keys, Commissioner of the 
Bureau of Reclamation (Reclamation). I am pleased to appear for 
the Department in support of S. 648 which extends Title I of 
the Reclamation States Emergency Drought Relief Act of 1991 
until the year 2010.
    Title I provides authority for construction, management, 
and conservation measures to alleviate the adverse impacts of 
drought, including mitigation of fish and wildlife impacts. 
However, wells are the only permanent construction authorized 
under the Act. All other Title I work must be of a temporary 
nature. No new Reclamation projects are authorized under Title 
I; Reclamation does not own, operate, or maintain projects 
funded under it. S. 648 would simply extend the expiration 
date. The $90 million ceiling in the law, initially authorized 
in 1991, is adequate for the foreseeable future.
    Title I also provides Reclamation with the flexibility to 
meet contractual water deliveries by allowing acquisition of 
water to meet requirements under the Endangered Species Act, 
benefiting contractors at a time when they are financially 
challenged. Additionally, Title I authorizes Reclamation to 
participate in water banks established under state law; 
facilitate water acquisitions between willing buyers and 
willing sellers; acquire conserved water for use under 
temporary contracts; make facilities available for storage and 
conveyance of project and non-project water; make project and 
non-project water available for non-project uses; and, acquire 
water for fish and wildlife purposes on a non-reimbursable 
basis.
    Title I often helps smaller, financially-strapped entities 
(towns, counties, tribes) that do not have the financial 
capability to deal with the impacts of drought. In many cases, 
Reclamation is the ``last resort'' for these communities.
    The Bureau of Reclamation has a long history of effective 
and responsive water management in good times and bad. While we 
consider ideas to make drought relief even more effective 
through improved interagency cooperation and other changes, we 
recognize that the reauthorization of Title I is necessary. S. 
648 allows Reclamation the flexibility to continue delivering 
water to meet authorized project purposes, meet environmental 
requirements, respect state water rights, work with all 
stakeholders, and to provide leadership, innovation, and 
assistance. This is why Reclamation supports S. 648.
    This concludes my statement. I am pleased to answer any 
questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 648, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

        Reclamation States Emergency Drought Relief Act of 1991

(43 U.S.C. 2214, as amended)

           *       *       *       *       *       *       *

SEC. 2214. APPLICABLE PERIOD OF DROUGHT PROGRAM.

           *       *       *       *       *       *       *

    (c) Termination of Authority.--The authorities established 
under this title shall terminate on [September 30, 2005] 
September 30, 2010.

           *       *       *       *       *       *       *

                                  
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